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Moving North in Food<br />

WHAT WILL SHOPPERS WANT NEXT<br />

Innovation in food is shaped by changing, often<br />

local, consumer requirements. In response,<br />

food <strong>brand</strong>s are seeking more engagement<br />

with consumers – particularly through social<br />

media – to put themselves at the forefront of<br />

understanding what they will want next and<br />

how they can respond.<br />

GLOBAL BRAND COMPASS FOOD BRANDS<br />

LOW PENETRATION &<br />

HIGH FREQUENCY<br />

W<br />

Ajinomoto<br />

16<br />

14<br />

HIGH PENETRATION &<br />

HIGH FREQUENCY<br />

N<br />

Four ways to win<br />

12<br />

CONVENIENCE AND NUTRITION PROVE<br />

A WINNING COMBINATION<br />

The 2014 Brand Footprint food ranking reveals<br />

two key trends: consumers say they want<br />

health, but they often choose convenience.<br />

Health is an important consideration for<br />

consumers worldwide when making food<br />

choices. Rising obesity, higher levels of<br />

education and food contamination scares are<br />

all motivating factors for the focus on health.<br />

Alongside this is a demand for food <strong>brand</strong>s<br />

to offer convenience. The needs of time-poor<br />

consumers, changing social habits and onthe-go<br />

eating are creating the desire for food<br />

options which are easy to prepare and to eat.<br />

Manufacturers have responded with healthy<br />

options and ‘better for you’ variants that<br />

replace high-sugar, sodium and fat products,<br />

and convenient solutions which meet new<br />

consumption occasions or consumer needs<br />

such as breakfast biscuits which offer slow<br />

release energy.<br />

In Asia, health benefits are considered as<br />

important as safety within food. Both attributes<br />

are especially valued by women: 72% of urban<br />

Vietnamese housewives want products with<br />

additional ‘active’ ingredients such as vitamins,<br />

ginseng and calcium. Convenience is also a<br />

growing priority with more than half of rural<br />

Vietnamese housewives now preferring food<br />

that doesn’t require much preparation. One<br />

global <strong>brand</strong> responding to these needs is<br />

Maggi which positions itself as 'the friend<br />

of consumers' with a strategy to make its<br />

products indispensable in the kitchens of<br />

every Vietnamese family.<br />

In Spain, where the penetration of ready-toeat<br />

food peaked in 2011, home-made dishes<br />

returned to popularity with households using<br />

healthier methods such as boiling, stewing<br />

and grilling. This trend has boosted the growth<br />

of <strong>brand</strong>s including Knorr which created new<br />

convenient home-cooking solutions.<br />

Despite their concern for healthy eating<br />

consumers in some countries, such as the UK<br />

and US, have increased the average sugar and<br />

saturated fat content in the food they buy. This<br />

is partly influenced by the trend for 'natural'<br />

products – butter is higher in saturated fat<br />

than ‘light’ margarine – but also due to a move<br />

towards more convenient processed foods.<br />

Did you know<br />

The portions eaten by men in<br />

the UK are on average 20%<br />

larger than those consumed<br />

by women. Women choose<br />

'healthy' <strong>brand</strong>s 25% more<br />

often than men.<br />

• Play an active role in the fight against<br />

obesity. Danone’s new Light and Fit range<br />

of fat-free yogurts in the US and Walker’s<br />

air-popped Pops snack in the UK meet<br />

consumers’ health needs as well as<br />

enhancing the <strong>brand</strong>s’ position as trusted and<br />

responsible. Bread <strong>brand</strong>s including Bimbo<br />

and Brazil’s Panco are also responding,<br />

launching more wholegrain, light and<br />

seeded variants. Understanding that people<br />

don’t want to skimp on taste, treat <strong>brand</strong>s<br />

such as Cornetto and Oreo have launched<br />

mini options that allow shoppers to indulge<br />

themselves with a smaller portion.<br />

• Take a different approach to ‘healthy’ in<br />

different countries. In Asia the focus is on<br />

‘naturalness’ and supplementing products<br />

with herbal-based benefits. Knorr and<br />

Maggi’s success in Asia is led by a strong<br />

emphasis on natural ingredients in the taste<br />

enhancer segment. Latin Americans are<br />

more interested in weight loss. Danone’s<br />

Ser <strong>brand</strong> has outdone competitors in Latin<br />

America with its tasty low calorie products.<br />

• Co-create products and experiences with<br />

consumers. This solidifies a <strong>brand</strong>’s role in<br />

consumers’ lives and enables it to tap into<br />

genuine experiences and needs, then produce<br />

products based on their specifications. It also<br />

generates engagement and excitement by<br />

involving consumers in the development of<br />

something new and unique.<br />

• Use co-<strong>brand</strong>ing to extend reach. Combining<br />

the best elements of two <strong>brand</strong>s – as Cadbury<br />

did with Ritz crackers and French biscuit<br />

LU to create Dairy Milk Ritz and Dairy Milk<br />

LU – can lead to new products that appeal to<br />

different consumers and markets. Mondelez is<br />

a pioneer of co-<strong>brand</strong>ing. Milka was partnered<br />

with Oreo in the UK and Philadelphia spread<br />

in France. Retailer partnerships can produce<br />

exciting new offerings, for instance the Oreo<br />

McFlurry in McDonalds.<br />

THE GAME CHANGER: HEALTHY BISCUITS AND<br />

BREAKFAST BISCUITS<br />

As the second most purchased category within the<br />

food market, biscuits have had an exciting year.<br />

Penetration % 2013<br />

S<br />

10<br />

8<br />

Kraft<br />

Bimbo<br />

Maggi<br />

Yakult Activia<br />

0 Kinder 10 6 20<br />

Yoplait<br />

Barilla<br />

Lay’s 30 Knorr<br />

40<br />

Doritos<br />

Hershey’s Quaker<br />

Heinz<br />

McCormick<br />

Danone Cheetos<br />

LOW PENETRATION & LOW<br />

FREQUENCY<br />

The category has innovated with new pack sizes,<br />

flavours and variants, creating new consumption<br />

occasions. One of the most revolutionary trends<br />

has been the growth of ‘healthy biscuits’, chosen<br />

for their low salt, fat and sugar content with<br />

added fibre and vitamins.<br />

BELVITA: REDEFINING BREAKFAST IN THE UK<br />

Belvita was first launched in France more than 10<br />

years ago. The ‘breakfast biscuit’ was created to<br />

address a gap in the French market for ready-toeat<br />

breakfasts that could be consumed on the go.<br />

Following its success in France, Belvita brought<br />

its products to the UK – which is a nation keen<br />

on biscuits, with 70% of the population eating the<br />

product in a typical week.<br />

Mondelez, the owner of Belvita, combined this<br />

local preference for biscuits with the need of<br />

UK consumers for a convenient and nutritious<br />

breakfast food. Mondelez spent $12.7m on<br />

marketing in the UK emphasising the product’s<br />

benefits: it’s easy to eat on the move, both tasty<br />

and satisfying, with energy that is released slowly.<br />

Following the success of the sub-segment in the<br />

UK, Belvita has exported the idea of eating healthy<br />

biscuits for breakfast to three continents. Belvita<br />

grew its Consumer Reach Points by 13% in the<br />

last year and jumped two positions in the global<br />

ranking. Growth was driven by Colombia and<br />

Saudi Arabia as well as the UK, where penetration<br />

4<br />

2<br />

2<br />

Oreo<br />

Frequency 2013<br />

Nestlé<br />

E<br />

HIGH PENETRATION &<br />

LOW FREQUENCY<br />

increased 5%. It has been less successful in<br />

Portugal and France where it has been challenged<br />

by local competitors such as Gullón and Nacional.<br />

So far the <strong>brand</strong> has protected its market-leading<br />

position in the UK with aggressive promotions,<br />

however the breakfast biscuit sub-segment is<br />

becoming more crowded with competitors such<br />

as Hovis, Quaker, Weetabix and McVitie’s all with<br />

their own breakfast biscuit variants. How long will<br />

Belvita’s lead be sustained<br />

Did you know<br />

Every household in Chile<br />

buys a tomato sauce at<br />

least once a year.<br />

32 | 33

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